EX-12 2 c26076exv12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

EXHIBIT 12
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Three months ended March 31,   2008     2007  
   
    (dollars are in millions)  
 
Net income
  $ 255     $ 541  
Income tax expense
    197       332  
                 
Income before income tax expense
    452       873  
                 
Fixed charges:
               
Interest expense
    1,879       2,071  
Interest portion of rentals(1)
    12       18  
                 
Total fixed charges
    1,891       2,089  
                 
Total earnings as defined
  $ 2,343     $ 2,962  
                 
Ratio of earnings to fixed charges
    1.24       1.42  
Preferred stock dividends(2)
    14       15  
Ratio of earnings to combined fixed charges and preferred stock dividends
    1.23       1.41  
 
 
(1)  Represents one-third of rentals, which approximates the portion representing interest.
 
(2)  Preferred stock dividends are grossed up to their pretax equivalents.